If my business has multiple owners, can I see how profits are split?

Asked 5 months ago

I am in the process of deciding how I am going to register my small business. I am leaning more towards the LLC structure for its flexibility, but I still need to clarify a few things before making a final decision. In the case of an LLC, since it does not have a limit on how many members the company may have, will I be able to see how the profits will be divided amongst all owners?

Cohen Kirk

Thursday, September 08, 2022

LLC profits are distributed proportionately to the members' investments in the company unless you have elected for a different allocation in your operating agreement. For example, if four members invested 25%, each of the four members would be responsible for taxes on 25% of the profits.

Write an answer...


Please follow our  Community Guidelines

Can't find what you're looking for?

Our website contains links to product that might contain affiliate links which may reward a commission when you purchased via our links. Our goal is to compare and review the products and services we write about in the best way to help our users. We might not review and feature every product/service in the market.Our service is free of charge. We might make affiliate commissions when you make a purchase via our links. This may influence if and the order of services and/or products that we review. Rest assured, the service providers cannot pay to guarantee any specific placements or get better reviews for themselves.